The term smartcard is used to describe any card with a capability to relate information to a particular application such as magnetic stripe, optical, memory, and microprocessor cards. FIG. 1 illustrates a typical microprocessor-type of smartcard includes a microprocessor and memory. No bigger than a credit card, smartcards contain a small microchip that can process and store thousands of bits of electronic data. Unlike passive devices (such as a memory card or magnetic stripe card) that can only store information, the smart card is active and able to process data in reacting to a given situation. This capability to record and modify information in its own non-volatile, physically protected memory makes the smartcard a powerful and practical tool.
Smartcards have the technical ability to host multiple applications. A single smartcard can therefore perform multiple functions such as, for example, credit card, calling card, stored value card, health care card or loyalty card. As such, a consumer would have to carry only one card for multiple applications. However, the problem with smartcards, and multi-application smartcards in particular, is that the logo printed on the card is permanently printed, and has to be shared by the companies behind the applications on the card. Because of the unwillingness of companies to agree to a particular appearance or logo for multi-application smartcards, consumers are left to carry around multiple smartcards, one for each particular application. Even if the companies could agree to a particular appearance, there would still be a problem of not being able to modify the appearance when an application is added or removed.